1-1 By: Bivins S.B. No. 1798 1-2 (In the Senate - Filed April 6, 2001; April 10, 2001, read 1-3 first time and referred to Committee on Education; April 17, 2001, 1-4 reported adversely, with favorable Committee Substitute by the 1-5 following vote: Yeas 7, Nays 0, 1 present, not voting; 1-6 April 17, 2001, sent to printer.) 1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 1798 By: Bivins 1-8 A BILL TO BE ENTITLED 1-9 AN ACT 1-10 relating to the creation, funding, and operation of the Teachers' 1-11 Home Loan Program. 1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-13 SECTION 1. Subchapter B, Chapter 1372, Government Code, is 1-14 amended by adding Section 1372.0221 to read as follows: 1-15 Sec. 1372.0221. DEDICATION OF PORTION OF STATE CEILING FOR 1-16 TEACHERS' HOME LOAN PROGRAM. Until August 25, 20 percent of that 1-17 portion of the state ceiling that is available exclusively for the 1-18 Texas Department of Housing and Community Affairs for the purpose 1-19 of issuing qualified mortgage bonds is set aside for one year for 1-20 the Teachers' Home Loan Program established under Subchapter GG, 1-21 Chapter 2306. 1-22 SECTION 2. Chapter 2306, Government Code, is amended by 1-23 adding Subchapter GG to read as follows: 1-24 SUBCHAPTER GG. TEACHERS' HOME LOAN PROGRAM 1-25 Sec. 2306.801. DEFINITIONS. In this subchapter: 1-26 (1) "Home" means a dwelling in this state in which a 1-27 teacher intends to reside as the teacher's principal residence. 1-28 (2) "Lending institution" means a mortgage lender as 1-29 defined by Section 2306.004. 1-30 (3) "Loan" means a Teachers' Home Loan Program loan 1-31 made under this subchapter that is secured by a mortgage on a 1-32 teacher's home. 1-33 (4) "Program" means the Teachers' Home Loan Program. 1-34 (5) "Teacher" means a person who is a classroom 1-35 teacher as defined by Section 5.001, Education Code. 1-36 Sec. 2306.802. TEACHERS' HOME LOAN PROGRAM. (a) The 1-37 department shall establish a program to provide eligible teachers 1-38 with low-interest home mortgage loans. 1-39 (b) To be eligible for a loan under this subchapter, a 1-40 teacher must: 1-41 (1) have been residing in this state for the five-year 1-42 period preceding the date the teacher files an application for a 1-43 loan under this subchapter; 1-44 (2) have been working as a teacher for the three-year 1-45 period immediately preceding that date; and 1-46 (3) reside in this state on that date. 1-47 Sec. 2306.803. FUNDING. The department may solicit and 1-48 accept funding for the program from the following sources: 1-49 (1) gifts and grants for the purposes of this 1-50 subchapter; 1-51 (2) available money in the housing trust fund 1-52 established under Section 2306.201; 1-53 (3) federal block grants that may be used for the 1-54 purposes of this subchapter; 1-55 (4) other state or federal programs that provide money 1-56 that may be used for the purposes of this subchapter; 1-57 (5) amounts received by the department in repayment of 1-58 loans made under this subchapter; and 1-59 (6) amounts received by the department as a result of 1-60 the issuance of qualified mortgage bonds set aside under Section 1-61 1372.0221. 1-62 Sec. 2306.804. ADMINISTRATION. (a) The department shall 1-63 administer the Teachers' Home Loan Program in accordance with this 1-64 subchapter. 2-1 (b) The department may contract with other agencies of the 2-2 state or with private entities to determine whether applicants 2-3 qualify as teachers under this subchapter or otherwise to 2-4 administer all or part of this subchapter. 2-5 (c) The board may set and collect from each applicant any 2-6 fees the board considers reasonable and necessary to cover the 2-7 expenses of administering the program. 2-8 (d) The board shall adopt rules governing: 2-9 (1) the administration of the program; 2-10 (2) the making of loans under the program; 2-11 (3) the criteria for approving lending institutions; 2-12 (4) the use of insurance on the loans and the homes 2-13 financed under the program, as considered appropriate by the board 2-14 to provide additional security for the loans; 2-15 (5) the verification of occupancy of the home by the 2-16 teacher as the teacher's principal residence; and 2-17 (6) the terms of any contract made with any lending 2-18 institution for processing, originating, servicing, or 2-19 administering the loans. 2-20 Sec. 2306.805. LOAN STRUCTURING. The department shall 2-21 ensure that a loan under this subchapter is structured in a way 2-22 that complies with any requirements associated with the source of 2-23 the funds used for the loan. 2-24 Sec. 2306.806. EXPIRATION. This subchapter expires 2-25 September 1, 2012. 2-26 SECTION 3. The Texas Department of Housing and Community 2-27 Affairs shall: 2-28 (1) aggressively pursue funding for the Teachers' Home 2-29 Loan Program required by Subchapter GG, Chapter 2306, Government 2-30 Code, as added by this Act; 2-31 (2) aggressively market and advertise the Teachers' 2-32 Home Loan Program to teachers in this state; and 2-33 (3) implement the Teachers' Home Loan Program required 2-34 by that subchapter not later than September 1, 2002. 2-35 SECTION 4. This Act takes effect immediately if it receives 2-36 a vote of two-thirds of all the members elected to each house, as 2-37 provided by Section 39, Article III, Texas Constitution. If this 2-38 Act does not receive the vote necessary for immediate effect, this 2-39 Act takes effect September 1, 2001. 2-40 * * * * *